subject: Debt Consolidation Program Pay Lowers Rates And Consolidates Your Payments [print this page] Are you struggling to handle your bills? A good bill consolidation or debt consolidation program could help you to manage it better. This program s main objective is to provide necessary aids to you, for meeting your existing monthly payments, as well as to help you to wipe out your debt.
Working principle of debt consolidation programs
Consolidation programs have adopted an approach, which could help you to lower the monthly payments that you have to make. Moreover, they will help you to get rid of extra charges or late fees.
Important steps involved in a consolidation program are given below
First Step: Avail free debt counseling without obligation
First of all, get in touch with any debt relief firm. Then, try to attend their free counseling session undertaken by their consultant. Their consultant will analyze the financial situation that you are currently facing. Consultant will conduct your income as well as expenditure review, for finding out the amount that you could afford to pay, to meet your various monthly bills.
Second Step: Register your name with a debt consolidation program
Your consultant will mail you the necessary documents that you will have to sign, if he comes across any consolidation program, which will offer you the most suitable solution. From the consultant, you will receive the details about the required fees as well as the authority form, which will entitle him to have meetings and discussions with your creditors, as your representative.
Third step: Consultant will begin handling your creditor calls
After you receive the documents, your consultant will contact you for clarifying your doubts, before you put signature on those documents. At this juncture, you can start diverting calls from your creditors to your consultant, and he will speak up for you.
Fourth Step: Consultant will negotiate for you as your representative
From your creditors, your consultant will get necessary information regarding your unsettled balances remaining on your debt accounts. This will help your consultant to undertake a comprehensive income as well as expenditure analysis. After that, he will send the report to your various creditors, incorporating a payment plan proposal, which is affordable for you.
Subsequently, your consultant will work with all your creditors or collection agencies for lowering the interest rates, which you pay, thereby reducing monthly payments. Consultant will ask your creditors to waive or lower additional charges as well as late fees, which are added on to your debt accounts, inorder to avoid those payments altogether.
Fifth Step: You can send the monthly payment through your consolidation firm
You should send your monthly payment to your consolidation firm, and they will disburse that amount to various collection agencies or creditors, whom you owe money. Therefore, various bills get consolidated into one entity of monthly payment. Hence, you can have sigh of relief about the managing numerous creditors simultaneously.
Sixth step: Your creditors will get their payment from consolidation firm
After receiving payment from you, consolidation firm will forward that amount to various creditors, in matter of few days. You might get creditor statements from creditors as proof of receiving your payment.
